Home NewsStock Market News Cloud business supports Baidu’s Q2 profit blowout | Anue Juheng – US stock radar

Cloud business supports Baidu’s Q2 profit blowout | Anue Juheng – US stock radar

by WOOWinvest
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Cloud business supports Baidu’s Q2 profit blowout | Anue Juheng – US stock radar

Chinese search engine giant Baidu announced its second-quarter 2022 financial report on Tuesday (30th) evening. Although revenue fell for the first time in two years, it was only slightly higher than market expectations, but its net profit far exceeded market expectations. Efforts to expand into new businesses are not affected by the downturn in the economic environment. Among them, Baidu’s smart cloud revenue has increased by more than 30% to support the overall financial performance.

Before the deadline, the ADR of Baidu (BIDU-US) US stocks rose 3.86% in pre-market, and the share price was tentatively reported at US$153; Baidu (9888-HK) Hong Kong stocks rose 0.34% on Tuesday to close at HK$146.30.

According to the financial report, Baidu’s revenue in the second quarter (6/30) decreased by 5% year-on-year to RMB 29.647 billion (the following units are the same), slightly higher than the market expectation of 29.411 billion yuan, with a quarterly increase of 4%; the net profit attributable to Baidu reported 36.37 100 million yuan, much higher than the market expectation of 2.2 billion yuan. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) reported 7.05 billion yuan, a decrease of 3% year-on-year and a quarterly increase of 28%, higher than market expectations of 5.47 billion yuan, and adjusted earnings per share reported 15.79 yuan, an annual It increased 2%, and the quarterly increase was 41%, which was higher than the expected 9.81 yuan.

Baidu Core’s second-quarter revenue was reported at 23.16 billion yuan, down 4% year-on-year, better than the expected 25.59 billion yuan, online marketing revenue was reported at 17.1 billion yuan, down 10% year-on-year, and non-marketing revenue was reported at 6.1 billion yuan, up 20% year-on-year , mainly driven by cloud services, etc. Revenue from iQIYI in the second quarter was 6.7 billion yuan, down 13% year-on-year.

Luo Rong, chief financial officer of Baidu, said that Baidu’s core R&D expenses accounted for more than 20% of Baidu’s core revenue for seven consecutive quarters. At the same time, thanks to measures such as cost reduction and efficiency improvement, and improvement of operating efficiency, Baidu’s non-GAAP core operating profit margin in the second quarter reached 22%, an increase from 17% in the first quarter of 2022.

It is worth noting that Baidu Intelligent Cloud maintained a growth trend in the second quarter, with revenue increasing by 31% year-on-year and 10% quarter-on-quarter. In the field of AI public cloud, according to the IDC report, Baidu Intelligent Cloud has won the first place in the AI ​​public cloud service market for six consecutive times.

In terms of autonomous driving, Baidu’s self-driving taxi travel service platform “Apollo Go” continued to expand its operating scale, providing 287,000 rides in the second quarter, an annual increase of nearly 500%. Temperance On July 20, 2022, the cumulative order volume of Radish Kuaipao reached 1 million, making it the world’s largest self-driving travel service provider.

Baidu’s Apollo Go driverless taxi. (Image: AFP)

In terms of mobile phone software, the user scale of Baidu App has grown steadily. In June, the number of monthly active users of Baidu App reached 628 million, an annual increase of 8%, and daily login users accounted for 84%. In other respects, according to the latest reports from data agencies IDC and Canalys, Baidu’s smart speakers will once again take the first place in China’s shipment rankings in the first quarter of 2022.

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